Oman Energy Sector Guide
Oman’s energy sector remains the backbone of the national economy, contributing approximately 30 percent of GDP and over 60 percent of government revenues. Under Vision 2040, the Sultanate is pursuing an ambitious energy transition strategy that balances continued hydrocarbon production with aggressive investment in renewable energy and green hydrogen.
Key Facts
| Indicator | Value |
|---|---|
| Crude Oil Production | ~1 million barrels per day |
| Natural Gas Production | ~40 billion cubic metres per year |
| Renewable Energy Target | 30% of electricity by 2030 |
| Green Hydrogen Capacity Target | 1 million tonnes per year by 2030 |
| Major Operator | Petroleum Development Oman (PDO) |
Oil and Gas Overview
Petroleum Development Oman, a joint venture between the government and Shell, remains the largest producer. Other major operators include Occidental Petroleum, BP, and TotalEnergies. Enhanced oil recovery techniques have extended the productive life of mature fields, while new exploration in Block 10 and Block 61 continues to yield discoveries.
Renewable Energy
The Ibri II Solar Plant, with 500 MW capacity, became operational in 2022 and represents the largest utility-scale solar project in Oman. The Dhofar Wind Farm in Harweel provides 50 MW of wind power. Future projects include the Manah Solar Plants I and II with combined capacity exceeding 1,000 MW.
Green Hydrogen
Oman has positioned itself as a global leader in green hydrogen development. The ACME project in Duqm and the Hyport Duqm joint venture between OQ and DEME aim to produce green ammonia for export markets. The Oman Hydrogen Strategy targets production capacity of 1 million tonnes per year by 2030, rising to 8.5 million tonnes by 2050.
Investment Opportunities
Foreign investors can participate through production sharing agreements, joint ventures with state entities, or direct investment in renewable energy projects via the Oman Authority for Public-Private Partnerships. The sector offers attractive fiscal terms and established regulatory frameworks through the Ministry of Energy and Minerals.
Regulatory Framework
The Ministry of Energy and Minerals oversees the sector alongside the Authority for Electricity Regulation. The Petroleum and Mining Law provides the legal basis for upstream activities, while the Electricity Sector Law governs power generation and distribution including renewable energy projects.